As a refundable tax credit, the ERC was made for businesses that kept paying their employees while shut down during the COVID-19 pandemic. It also relates to businesses having a huge decline in gross receipts during the eligibility periods of 2020 and the first three quarters of 2021. Though all businesses can benefit from the program, small businesses have more advantages than larger ones. Let’s find out what qualifies you for the employee retention credit.

Impacted by decreased revenue or government-backed lockdown

A vital eligibility for employee retention credit is that your business was affected by either a decreased revenue or a government-enforced lockdown. Businesses that were affected by partial or full operation suspension during the COVID-19 lockdown during any quarter can also qualify. It also includes capacity restrictions. 

I am not a business person in true sense. But, this blog is a business for me in many ways. It earns me my mortgage, taxes and insurance bills. It also filling up my retirement income. But at the same time, you may consider this a hobby that is commercialized. Whichever way you think. Starting a business to live your dream often starts with small endeavors. Careful planning, lots of enthusiasm and enough hard work. These are needed more than financial resources.

Let’s face it; as long as you are working for someone else, your future is not in your own hands. Most of us have to work to live, but there is no reason to live to work. A majority of workers dream about being their own boss, yet feel stymied when it comes to starting their own business.